Real estate fuels huge jump in Blackstone’s profit

New York /
Jan.January 30, 2014 12:00 PM

Blackstone Group ended its tremendous 2013 with a strong showing in the fourth quarter, mostly on the strength of gain in its real estate portfolio. Blackstone’s fourth-quarter profit was $621.3 million, a greater than five-fold increase from $106.4 million in the fourth quarter of 2012, according to its latest earnings report.

Blackstone’s real estate group, headed by Jonathan Gray, reported a 13.1 percent increase in the value of its real estate funds, according to the report, released yesterday. Blackstone sold a chunk of office properties in both the United States and the United Kingdom, and reaped big rewards from taking its hotel chain Hilton Worldwide Holdings public in December, according to the Wall Street Journal. Still, Blackstone is the biggest single-family landlord in the U.S. at the moment, published reports show.

Sources recently told The Real Deal that Gray’s real estate division was responsible for about 60 percent of the private equity firm’s profits. Gray reportedly became a billionaire himself last year.

Just yesterday, the second-largest U.S. landlord, American Homes 4 Rent, tapped Goldman Sachs to arrange the sale of bonds backed by rental home payments, mimicking Blackstone’s decision last year to market similarly-styled securities. [WSJ]  – Hiten Samtani


Related Articles

arrow_forward_ios
Blackstone CEO Stephen Schwarzman, and Starwood CEO Barry Sternlicht (Getty)
Blackstone, Starwood strike $6B deal for Extended Stay America
Blackstone, Starwood strike $6B deal for Extended Stay America
345 Park Avenue and Blackstone President Jonathan Gray (Google Maps, Twitter)
Blackstone expands Manhattan HQ
Blackstone expands Manhattan HQ
Photo Illustration of Blackstone's Jonathan Gray (Getty; iStock/Illustration by Kevin Rebong for The Real Deal)
How Blackstone’s Jon Gray undercut his UK counterpart
How Blackstone’s Jon Gray undercut his UK counterpart
Blackstone CEO Jonathan Gray (Getty; iStock)
Blackstone revenue jumps in Q4
Blackstone revenue jumps in Q4
Photo Illustration of BioMed Realty CEO Tim Schoen and Alexandria Real Estate Equities CEO Joel S Marcus. (Getty, BioMed)
Life sciences boom continues with 36M sf in works
Life sciences boom continues with 36M sf in works
From left: Flex’s Shragie Lichtenstein; Piñata’s Lily Liu; NestEgg’s Eachan Fletcher; and Till’s David Sullivan
These startups want to guarantee your rent
These startups want to guarantee your rent
Blackstone president Jon Gray (Photo via YouTube)
Blackstone’s quarantine-themed holiday video stars sanitizer, sourdough starter and Santa
Blackstone’s quarantine-themed holiday video stars sanitizer, sourdough starter and Santa
Blackstone’s Nadeem Meghji (Blackstone, iStock)
Blackstone to acquire life-sciences portfolio for $3.45B
Blackstone to acquire life-sciences portfolio for $3.45B
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...